Liontrust revenues rise 18% amid market turmoil

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Liontrust Asset Management revenues have risen 18 per cent in the six months to the end of September, despite a drop in net inflows.

Revenues for the period, released today, were £18.7m, up from £15.8m for the same period the previous year. Profit before tax also rose, by 16 per cent, to £5.9m for the period.

However, net inflows at the asset manager were down on last year, clocking in £110m of net inflows compared to £284m for the previous year.

UK retail net inflows were £104m for the period, however, market and investment performance saw a £133m loss on the assets bring total UK retail assets under management to £3.06bn.

The manager’s managed portfolio service saw inflows of £17m and investment losses of £9m, taking total assets to £164m, up from £156 at the start of the period.

Adrian Collins, chairman of the board, acknowledged that markets had been difficult.

“It is particularly pleasing that we have been able to report these figures for a period in which there was mounting uncertainty among investors about the future direction of markets. We attribute the relative robustness of our AuM during such volatile market environments to our distinct investment processes, the experience and longevity of our fund managers and our regular and clear communications,” he says.

Total assets, including institutional and offshore funds, are now £4.4bn after £110m of inflows and a £183m loss on investment performance for the period.

“The fund management industry is benefiting from the ever increasing need for people to save for their own retirement and then having the freedom to choose what to do with their pension pot when they have retired,” says John Ions, chief executive at Liontrust.

“Given the fund management expertise and strength of distribution we have, I am confident we will be entrusted with greater levels of people’s savings in the future.”

Earnings per share rose by 11 per cent to 10.4p per share and the board announced an interim dividend of 3p per share, to be paid in December.

The manager says it is on the hunt for new fund management teams in order to expand. It is launching a water and agriculture fund and a UK micro cap fund in the next few months, but says more launches are in the pipeline.

“We will be enhancing our fund offering further through new launches where we have the expertise or hires and acquisitions where we do not,” says Collins.

“This all means we are very well positioned to take advantage of the well known long-term opportunities for fund management companies and to succeed in continuing to grow the company.”